Buy Sesa Goa on declines: Phani Sekhar

Buy Sesa Goa on declines, says Phani Sekhar, Angel Broking.

Sekhar told CNBC-TV18, "The supreme court order on lifting of ban on export of iron ore from Karnataka could not have commit a better time, especially when you see international iron ore prices at multi-year highs, so that is certainly a shot in the arm for Sesa Goa. Having said that, one needs to also take into consideration the recent budget proposal, which actually peaks the excise duty on iron ore fines, which is the main export item, as far as iron ore is concerned and when you take that into consideration and the prevailing iron ore prices in China, and those that are in India, I think the benefit to a great extent gets neutralized."

"I think the initial run-up has happened in Sesa Goa, I think going from here on will be much more muted. So I would advice the investor to hold and wait for a correction to a level of Rs 280 or Rs 290 and then buy with a one year target of Rs 350 or Rs 360, because I think the initial juice has already been squeezed in this rally and from here on we can only expect some kind of a correction."